Apple has published its earnings report for Q3 2022. Overall, the financial results for the past period were positive. Against this backdrop, Apple shares rose more than 3%. However, shareholders and other stock market participants are concerned about too slow growth. However, in the conditions of economic instability, the growth of income is a good result and even a kind of achievement.
Key financial indicators of Apple’s earnings report:
- Earnings per share (EPS): $1.20 vs. $1.16 estimated
- Revenue: $83 billion vs. $82.81 billion estimated
- Gross margin: 43.26% vs. 42.61% estimated
Apple Narrowly Beats Estimates, Reports Record Q3 Revenue
For Q3 2022, Apple reported revenue of $83.0 billion and a profit of $19.4 billion. Earnings-per-share hit $1.20 for the quarter.
Respectively, Apple’s revenue rose 2% during the quarter, compared to 36% growth during the same period last year and over 8% growth in the March quarter. Cook said the results were better than expected, and CFO Luca Maestri said it was a “challenging operating environment.”
Apple’s slow growth may signal a slow period for the entire electronics industry. Chipmakers and other computer producers have reported that there is less demand around the world because consumers are fearful of global recessions and steep inflation.
Cook also told CNBC that the company is seeing inflation but will continue to make investments: “We do see inflation in our cost structure,” Cook said. “We see it in things like logistics and wages and certain silicon components, and we’re still hiring, but we’re doing it on a deliberate basis.”
Overall, the results of the company’s activities were varied. On the one hand, MacBook sales were worse than expected. On the other hand, sales of subscriptions and iPhone sales exceeded forecasts.
What to Expect from Apple Shareholders
AAPL July 27th hourly chart.
Apple had not provided any guidance for Q4 2022, citing ongoing supply chain issues and continued disruptions caused by the COVID-19 pandemic. In fact, the company had even warned that supply constraints would cost it somewhere in the range of $4 billion to $8 billion in revenue for the quarter.
Analysts expected the company to give fourth-quarter guidance of $1.31 in earnings per share and nearly $90 billion in sales. But that didn’t happen.
Nevertheless, Tim Cook is optimistic. According to him, the company can continue to increase revenues, albeit at a slower pace.
“In terms of an outlook in the aggregate, we expect revenue to accelerate in the September quarter despite seeing some pockets of softness,” Apple CEO Tim Cook told CNBC’s Steve Kovach.
At the moment, there are no factors indicating a serious decline in demand for Apple products. Therefore, there is every chance that the company will show encouraging financial results in the next, Q4 quarter of 2022.
Summary
- Apple reported fiscal third-quarter earnings that beat Wall Street expectations for sales and profit.
- Apple stock rose over 3% in extended trading.
- There is every chance that the company will show encouraging financial results in the next, Q4 quarter of 2022.
